Media speculation has suggested that sub prime lender specialist, Provident Financial is preparing to shut its doorstep lending business which has been running for 141 years.
The Times newspaper and other national media outlets have reported that Provident was planning to close the division after 141 years and instead focus on its credit card and car finance businesses.
Provident Financial’s doorstop business which was the foundation for the firms lending currently has more than 380,000 customers and closing.
The closure of the loss-making division was first mentioned in March when the firm warned it was “’likely the division would be put into administration or liquidation if it couldn’t agree a scheme of arrangement for assessing and paying compensation claims relating to the firms Provident, Glo and Satsuma products.
The business has currently put £65 million aside to deal with compensation claims from CCD customers.
The saga of the firm’s CCD dates back to 2017, when a profit warning within the division was central to the then-FTSE 100 company seeing two-thirds of its market value lost in a day as its share price crashed.